November 28, 2018 / 10:31 PM / 3 months ago

Lawsuit says Freedom Mortgage made illegal profits on insurance

New Jersey-based lender Freedom Mortgage Corp has been hit with a proposed class action accusing it of making illegal profits on force-placed insurance, coverage that homeowners must pay for if their own policy lapses.

Filed on Tuesday in Trenton federal court on behalf of thousands of homeowners nationwide, the lawsuit said Freedom Mortgage took kickbacks from American Security Insurance Co (ASIC), an indirect subsidiary of Manhattan-based Assurant, in exchange for giving the company the exclusive right to provide the insurance. ASIC was also named as a defendant in the lawsuit.

To read the full story on WestlawNext Practitioner Insights, click here:

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